Uber wasn’t successful because of a new technology; they were successful because of a new business model. Airbnb wasn’t successful because of a new technology; they were successful because of a new business model. Amazon wasn’t successful because they introduced a new technology; instead, they leveraged a new technology to introduce a new business model.
Can you achieve great success by creating and introducing a new technology? Absolutely! But there are few of us who will be able to do that in our lifetime. However, all of us have the opportunity and capacity to introduce game-changing business models. Following are three articles that share more examples of business models that lead to success.
I’ve sat through many strategy sessions that pondered, debated, came to blows over a simple question, “what’s our greatest asset?” There’s the customer camp, the employee camp, the R&D camp, and occasionally the investor or management camp. Well, I suggest that they are all important. Now, let’s move on.
So, are we exploring a similar imponderable, “which is more important, technology innovation or business model innovation?” I believe that we are not. For most of us, business model innovation is more important and should be the focus of our disruptive innovation efforts. Am I saying that technology innovation is not important? Certainly not! But technology innovation is something we leverage, not usually something we create.
Focusing on technology and technology innovation is the wrong place to start. You must start with the customer, the job to be done, the need, the opportunity, the current satisfaction gaps. Only after you understand the opportunity do you begin looking at how you might leverage technology to bring to market a simpler, more accessible, less expensive solution, and even then, only within context of a winning business model.
Despite all that, we still believe it’s important to keep technology on your radar. At The Disruption Lab, we try to keep our members well informed about technology innovations. Well informed means not only knowing what’s on the horizon but being equipped to discern leading edge from bleeding edge, hype from reality, an enabler from a distraction.
We leave you today with a look at technology trends that will likely enable game-changing business models.